Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

You can achieve Negative Churn, which means you are adding MRR at a faster pace than you are losing it.

Market Research Articles

• Custom Analytics Dashboards
  There is an overwhelming amount of data in analytics, so Google has made it possible to create custom dashboards so you don't have to thumb through a ton of irrelevant information. You can create multiple dashboards for different roles or departments. We'll walk through creating a dashboard called "content marketing" step-by-step.Getting StartedIn the reporting tab, […]
• Personas and The “Broken Telephone” Game
  We've all played the telephone game.
• An Analytics Primer
  Analytics can be very intimidating. There is so much information that its far too easy to get lost in a a sea of numbers and charts, but once you get past the relatively steep leaning curve, you will discover that it is an incredible asset to your business.Analytics can tell you where your web traffic […]
• Segmentation, Targeting, and Positioning
  If you try to target everyone you end up not reaching anyone.
• SaaS SEO Trends and Strategies to Watch in 2023
  SaaS SEO Trends and Strategies to Watch in 2023Search Engine Optimization has come a long way since its inception, and it's constantly evolving. As a SaaS company, it's essential to stay on top of these changes to ensure your website ranks highly in search engine results pages (SERPs). In this blog post, we'll explore some […]
• Managing KPIs with Analytics
  Key Performance Indicators Last week we provided an introduction to some of the basics of Google Analytics. This week we're going to dig a little deeper, and we'll start with key performance indicators, or KPIs. KPIs are core actions or metrics that you can establish that have a profound impact on your business. They are […]
• How To Assess Your Brand, Website, Marketing & Competitors
  There are two things required to reach a destination - first to know where you want to go, but second to also know where you stand today.
• The Importance of Surveying your Clients
  Today, Rick talks about a tool that can help you build a better sales process and put you in a better position to close sales in the future. One thing I wanted to talk to you about today, is not specifically a sales tool, but it’s something you can do and integrate into your business […]
• Driving ROI from Google Analytics
  The how-to tutorial on understanding and utilizing Google Analytics to improve conversion, search optimization, engagement and overall better online marketing.

SaaS + Software Stats

• If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey
• The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%
• At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR
• If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years
• The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn
• High-growth companies offer a return to shareholders 5 times greater than medium-growth companies
• The fastest growing SaaS companies raise an average of $9.5M in Series A funding
• If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business
• Three uses for the SaaS Guidelines

Market Research Stats

• In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.
• If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer
• The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%
• SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence
• Cloud application services are expected to grow at an average annual rate of 18.5% through 2025
• Over the past five years, the Global Biotechnology industry has grown by 2.0% to reach revenue of $301bn in 2019.
• The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.
• Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing
• 54% treat upselling and add-on sales as high priority